HomeMy WebLinkAboutF-1.1. FY 2021-22 3rd Quarter Budget Reports for Water and Electric Funds_APPROVEDINFORMATION ITEM
TO: HONORABLE CHAIRPERSON AND MEMBERS OF THE AZUSA UTILITY
BOARD
FROM: TIKAN SINGH, GENERAL MANAGER
DATE: MAY 31, 2022
SUBJECT: FISCAL YEAR 2021-22 THIRD QUARTER BUDGET REPORTS FOR WATER AND
ELECTRIC FUNDS
BACKGROUND:
The attached reports include unaudited budget-to-actual performance for the Water and Electric funds
through March 31, 2022.
RECOMMENDATION:
Staff recommends the Utility Board take the following action:
1)Receive and file Fiscal Year 2021-22 3rd Quarter Budget Reports for Water and Electric
funds.
ANALYSIS:
WATER
Sales of water through the third quarter were 3.2% lower than the third quarter of the prior fiscal year,
and billed amounts were 3.1% lower. The decrease in sales and billed amounts was due to increased
customer conservation. The table below shows a 10-year trend of third quarter sales, billings, and
number of billed accounts for the Water Utility:
3rd Quarter Water Sales/Billings
FY CCF Sales Billings Billed Accounts
12-13 6,138,787 $13,665,652 22,707
13-14 6,091,647 $13,540,042 22,950
14-15 5,452,349 $13,176,832 23,198
15-16 4,696,053 $11,637,738 23,359
16-17 4,869,555 $13,148,728 23,545
17-18 5,483,914 $14,493,985 23,618
18-19 5,078,254 $15,390,850 23,777
F-1Approved
Utility Board
05/31/2022
Quarterly Financial Report
May 31, 2022
Page 2
19-20 4,956,905 $16,564,658 24,025
20-21 5,125,223 $17,076,736 23,425
21-22 4,960,738 $16,541,402 23,436
Third quarter revenues were higher with the revenues at 80% of budget and expenditures lower at 74%,
respectively, which yielded a net operating income of $4,602,582. Third quarter operations resulted in a
$3.8M decrease in cash reserves from fiscal year end, after funding $4.1M in capital improvements
pursuant to the Capital Improvement Program. The current cash reserve balance is $28.5 million, which
exceeds the Utility’s minimum reserve requirement target of $19.6 million. The estimated debt coverage
ratio is at 1.27 times the amount of debt service obligations, which is above the 1.25 bond covenant
requirement.
ELECTRIC
Sales of electricity through the third quarter were 1.7% lower than third quarter of the prior fiscal year,
and billed amounts were 7.4% higher. The table below shows a 10-year trend of third quarter sales,
billings, and number of billed accounts for the Electric Utility:
3rd Quarter Electric Sales/Billings
FY kWh Sales Billings Billed Accounts
12-13 190,501,254 $28,129,703 16,017
13-14 189,279,818 $27,842,470 16,273
14-15 197,733,299 $30,404,653 16,571
15-16 196,509,373 $28,440,555 16,781
16-17 195,758,432 $28,516,108 16,886
17-18 196,805,281 $26,341,840 17,023
18-19 193,908,074 $28,211,508 17,088
19-20 185,977,846 $27,564,204 18,478
20-21 186,317,274 $27,468,686 17,110
21-22 183,034,380 $29,506,234 17,294
Third quarter revenues were higher with the revenues at 84% of budget and expenditures lower at 68%,
respectively, which yielded a net operating income of $7,674,626. Third quarter operations resulted in a
$4.3M increase in cash reserves from fiscal year end, after funding $765K in capital improvements
pursuant to the Capital Improvement Program. The current cash reserve balance is $29.3 million, which
exceeds the Utility’s minimum reserve requirement target of $13.5 million. The estimated debt
coverage ratio is at 10.84 times the amount of debt service obligations, which is above the 1.10 bond
covenant requirement.
Quarterly Financial Report
May 31, 2022
Page 3
Prepared by:
Danny Smith
Utilities Admin & Finance Manager
Reviewed and Approved:
Tikan Singh
General Manager
Reviewed and Approved:
Sergio Gonzalez
City Manager
Attachments:
1) 3rd Quarter Water Utility Operating Budget Report FY 21-22
2) 3rd Quarter Electric Utility Operating Budget Report FY 21-22